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Snow Park’s Analysis is Deeply Flawed and Demonstrates a
Fundamental Lack of Understanding of Front Yard’s Business and
Single-Family Rental Sector

Amended AMA, Well-Received by Market, was Designed to Maximize
Flexibility and Generate

Long-Term Stockholder Value

Urges Stockholders to Vote the WHITE Proxy Card “FOR ALL” of Front
Yard’s Director Nominees Who Are Highly Qualified and Committed to
Enhancing Long-term Value for Stockholders

CHRISTIANSTED, U.S. Virgin Islands–(BUSINESS WIRE)–Front Yard Residential Corporation (“Front Yard” or the “Company”)
(NYSE: RESI) today responded to the ill-informed and misleading
assertions from Snow Park Capital Partners, LP, together with its
affiliates (“Snow Park”), regarding the amended and restated asset
management agreement (the “Amended AMA”) the Company entered into with
Altisource Asset Management Corporation (“AAMC”).

Front Yard believes that Snow Park lacks a fundamental understanding of
our business and how external management agreements are structured, as
well as the broader single-family rental (“SFR”) sector.

Below are the facts:

1) The Amended AMA maximizes Front Yard’s flexibility and
ensures the Company has the ability to pursue disciplined growth for the

Snow Park appears to have misinterpreted the Amended AMA entirely. The
Amended AMA provides Front Yard with an improved fee structure that
incentivizes both performance and disciplined growth. In fact, it is
designed to build long-term stockholder value by enabling Front Yard to
increase scale and take advantage of the exceptional opportunity in the
affordable SFR sector while prioritizing near-term profitability
targets. It also ensures that G&A expenses as a percentage of real
estate assets fall as we grow. Specifically, the Amended AMA:

  • Does NOT increase fees paid to AAMC until Front Yard reaches
    its stated target of $0.15 per share of quarterly Adjusted Funds From
    Operations (“AFFO”);
  • Decreases the management fees as a percentage of gross real estate
    assets as Front Yard grows to bring Front Yard’s G&A in line with
    larger industry peers;
  • Provides that no Incentive Fee is payable to AAMC until Front Yard
    achieves $0.60 per share of annual AFFO;
  • Employs an “Aggregate Fee Cap” to further ensure that G&A remains in
    line with market;
  • Further aligns interests with stockholders by incentivizing the
    manager to grow cash flow;
  • Provides the option to terminate the Amended AMA at any time for a
    reasonable, market-based termination fee; and
  • Reduces cost of raising new capital.

2) The market reacted highly favorably to the news of the
Amended AMA.

The announcement of the Amended AMA has been well received by the
market, our stockholders and the analysts that understand our business
best. Front Yard’s stock price is up approximately 10% since the
announcement of the Amended AMA on May 8, 2019. Snow Park’s assessment
of the Amended AMA is simply inconsistent with the market’s reaction.

3) Amended AMA was structured to create long-term stockholder

Renegotiating the asset management agreement with AAMC has been a key
strategic priority for Front Yard’s Board of Directors (the “Board”).
The Amended AMA represents the culmination of more than seven months of
deliberations between AAMC and a committee of Front Yard’s independent
directors. The committee of independent directors met over 30 times and
was advised by leading independent financial and legal advisors.

The Board took into account a number of different metrics, including
TSR, in renegotiating the fee structure and determined that gross real
estate assets and gross return on shareholder equity were consistent
with industry norms and would align AAMC’s interests with those of Front
Yard’s stockholders.

4) Snow Park is highly conflicted and not a “true owner” of
Front Yard given its significant stake in AAMC and substantial short
position in Front Yard.

Snow Park’s interests are not aligned with Front Yard’s stockholders.
Despite claiming ownership of 606,622 shares of Front Yard, Snow Park
admits in its proxy statement that it also “has a short interest in
450,000 shares,” meaning that Snow Park’s economic exposure is
substantially less than 1%. When compared to Snow Park’s over 5%
interest in AAMC, it is clear that Snow Park’s interests are not aligned
with those of Front Yard’s stockholders. Snow Park acknowledges its
possible conflict of interest in its proxy statement, which states:
“Snow Park does not presently believe that its ownership of AAMC
securities creates a conflict of interest; however, it acknowledges that
in the future conflicts of interest could arise due to potential
competing economic interests between AAMC and Front Yard.”

Front Yard urges stockholders to protect their investment by voting the WHITE
proxy card “FOR ALL” of the Company’s highly-qualified director
nominees. Front Yard’s definitive proxy materials and other important
information related to the Company’s 2019 Annual Meeting of Stockholders
can be found on the “Investors” section of the Company’s website at,
and on the SEC’s website at


If you have questions or need assistance in voting your shares

on the WHITE proxy card, please call our proxy solicitor:




Stockholders may call toll-free at 1 (888) 750-5834

Banks and Brokers may call collect at 1 (212) 750-5833


About Front Yard

Front Yard is an industry leader in providing quality, affordable rental
homes to America’s families. Our homes offer exceptional value in a
variety of suburban communities that have easy accessibility to
metropolitan areas. Front Yard’s tenants enjoy the space and comfort
that is unique to single-family housing, at reasonable prices. Our
mission is to provide our tenants with houses they are proud to call
home. Additional information is available at

Forward-Looking Statements

The information in this press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, regarding management’s beliefs, estimates,
projections, anticipations and assumptions with respect to, among other
things, the Company’s financial results, future operations, business
plans and investment strategies, industry and market conditions and the
future composition of the Company’s Board. These statements may be
identified by words such as “anticipate,” “intend,” “expect,” “may,”
“could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,”
“believe” and other expressions or words of similar meaning. We caution
that forward-looking statements are qualified by the existence of
certain risks and uncertainties that could cause actual results and
events to differ materially from what is contemplated by the
forward-looking statements. Factors that could cause our actual results
to differ materially from these forward-looking statements may include,
without limitation, our ability to implement our business strategy; our
ability to make distributions to stockholders; our ability to acquire
SFR assets for our portfolio, including difficulties in identifying
assets to acquire; the impact of changes to the supply of, value of and
the returns on SFR assets; our ability to successfully integrate newly
acquired properties into our portfolio of SFR properties; our ability to
successfully operate our internal property manager and perform property
management services for our SFR assets at the standard and/or the cost
that we anticipate; our ability to transition property management for
the SFR properties currently managed by third party property managers to
our internal property management platform; our ability to predict our
costs; our ability to effectively compete with our competitors; our
ability to apply the proceeds from financing activities or non-rental
real estate owned asset sales to target SFR assets in a timely manner;
our ability to sell non-rental real estate owned properties on favorable
terms and on a timely basis or at all; the failure to identify
unforeseen expenses or material liabilities associated with asset
acquisitions through the due diligence process prior to such
acquisitions; changes in the market value of our SFR properties and real
estate owned; changes in interest rates; our ability to obtain and
access financing arrangements on favorable terms or at all; our ability
to maintain adequate liquidity; our ability to retain our engagement of
Altisource Asset Management Corporation; the failure of our third party
vendors to effectively perform their obligations under their respective
agreements with us; our failure to maintain our qualification as a REIT;
our failure to maintain our exemption from registration under the
Investment Company Act; the impact of adverse real estate, mortgage or
housing markets; the impact of adverse legislative, regulatory or tax
changes; and other risks and uncertainties detailed in the “Risk
Factors” and other sections described from time to time in our current
and future filings with the Securities and Exchange Commission. In
addition, financial risks such as liquidity, interest rate and credit
risks could influence future results. The foregoing list of factors
should not be construed as exhaustive.

The statements made in this press release are current as of the date of
this press release only. The Company undertakes no obligation to
publicly update or revise any forward-looking statements or any other
information contained herein, whether as a result of new information,
future events or otherwise, except as required by law.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and
form of associated WHITE proxy card with the U.S. Securities and
Exchange Commission (the “SEC”) in connection with its solicitation of
proxies for its 2019 Annual Meeting of Stockholders. STOCKHOLDERS ARE
obtain the proxy statement, any amendments or supplements to the proxy
statement and other documents as and when filed by the Company with the
SEC without charge from the SEC’s website at

Certain Information Regarding Participants in Solicitation

The Company, its directors and certain of its executive officers may be
deemed to be participants in the solicitation of proxies from
stockholders in connection with the matters to be considered at the 2019
Annual Meeting. Information regarding the ownership of the Company’s
directors and executive officers in the Company’s stock is included in
their SEC filings on Forms 3, 4 and 5, which can be found through the
SEC’s website at
Information can also be found in the Company’s other SEC filings. More
detailed and updated information regarding the identity of potential
participants, and their direct or indirect interests, by security
holdings or otherwise, will be set forth in the proxy statement and
other materials to be filed with the SEC. These documents can be
obtained free of charge from the sources indicated above.


Robin N. Lowe
Chief Financial Officer
[email protected]

Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co.
[email protected]